Starcore International Mines Ltd Net Income dropped on 92.9% in 2015 and Revenue dropped on 14.3%
29.10.2015 • About Starcore International Mines Ltd (
$SAM) • By InTwits
Starcore International Mines Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Starcore International Mines Ltd doesn't have a profitable business model yet: FY2015 ROIC is -5.8%
- EBITDA Margin is declining: 11.4% in FY2015 vs. 33.1% in FY2014 vs. 36.6% in FY2011
- EBITDA Margin is quite volatile: 11.4% in FY2015, 33.1% in FY2014, 35.1% in FY2013, 40.2% in FY2012, 36.6% in FY2011
- Starcore International Mines Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.8%. At the same time it's a lot of higher than industry average of 8.5%.
- CAPEX is quite volatile: 0 in FY2015, 0.83 in FY2014, 0 in FY2013, 0.069 in FY2012, 0.23 in FY2011
- The company has unprofitable business model: ROIC is at -5.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Starcore International Mines Ltd ($SAM) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 39.465 | 57.039 | 30.246 | 33.136 | 28.405 | -14.3% |
| Gross Profit | 13.954 | 21.690 | 8.298 | 8.588 | 0.645 | -92.5% |
| SG&A | | | | | 1.556 | |
| EBITDA | 14.429 | 22.939 | 10.615 | 10.952 | 3.233 | -70.5% |
| Net Income | -4.177 | 14.335 | 4.702 | 2.965 | 0.210 | -92.9% |
Balance Sheet
|
|---|
| Cash | 0.712 | 1.675 | 5.638 | 5.454 | 3.370 | -38.2% |
| Short Term Debt | 13.796 | 7.698 | 3.479 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 4.197 | 6.372 | 3.828 | 5.967 | 3.299 | -44.7% |
Ratios
|
|---|
| Revenue growth | 70.1% | 44.5% | -47.0% | 9.6% | -14.3% | |
| EBITDA growth | 63.7% | 59.0% | -53.7% | 3.2% | -70.5% | |
| Gross Margin | 35.4% | 38.0% | 27.4% | 25.9% | 2.3% | -23.6% |
| EBITDA Margin | 36.6% | 40.2% | 35.1% | 33.1% | 11.4% | -21.7% |
| Net Income Margin | -10.6% | 25.1% | 15.5% | 8.9% | 0.7% | -8.2% |
| SG&A, % of revenue | | | | | 5.5% | 5.5% |
| CAPEX, % of revenue | 10.6% | 11.2% | 12.7% | 18.0% | 11.6% | -6.4% |
| ROIC | 42.5% | 46.1% | 10.8% | 9.0% | -5.8% | -14.8% |
| ROE | -31.6% | 59.1% | 12.0% | 6.6% | 0.4% | -6.2% |
| Net Debt/EBITDA | 0.9x | 0.3x | -0.2x | -0.5x | -1.0x | -0.5x |
Revenue and profitability
The company's Revenue dropped on 14.3% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 21.7 pp from 33.1% to 11.4% in FY2015.
Gross Margin dropped on 23.6 pp from 25.9% to 2.3% in FY2015.
Net Income marign decreased on 8.2 pp from 8.9% to 0.74% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Starcore International Mines Ltd had CAPEX/Revenue of 11.6%. CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 14.1%.Battling declining revenue the company made large investments to CAPEX (102% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-5.83%) and low but positive ROE (0.42%). ROIC dropped on 14.8 pp from 9.0% to -5.8% in FY2015. ROE decreased on 6.2 pp from 6.6% to 0.42% in FY2015.
Leverage (Debt)
The company has no debt. Cash dropped on 38.2% in FY2015.
Appendix 1: Peers in Basic Materials
Below we provide Starcore International Mines Ltd benchmarking against other companies in Basic Materials industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Northern Sun Mining Corp ($NSC) | -93.3% | 315.4% | -99.4% | 8,924.9% | |
| Turquoise Hill Resources Ltd ($TRQ) | | | -34.0% | 3,268.9% | -5.8% |
| Asian Mineral Resources Ltd ($ASN) | | | | 859.1% | |
| Ur-Energy Inc ($URE) | | | | 285.4% | |
| Nevsun Resources Ltd ($NSU) | | 3.3% | -72.5% | 256.5% | |
| |
|---|
| Median (129 companies) | 27.7% | 8.0% | -4.8% | -1.1% | 10.4% |
|---|
| Starcore International Mines Ltd ($SAM) | | 44.5% | -47.0% | 9.6% | -14.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nevsun Resources Ltd ($NSU) | 90.3% | 89.9% | 94.8% | 95.5% | |
| Franco-Nevada Corp ($FNV) | 84.6% | 86.1% | 85.0% | 83.5% | |
| Labrador Iron Ore Royalty Corp ($LIF) | 80.2% | 80.2% | 80.2% | 80.2% | |
| Lucara Diamond Corp ($LUC) | | 42.5% | 57.4% | 66.7% | |
| Royal Gold Inc ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| |
|---|
| Median (132 companies) | 30.1% | 31.4% | 21.3% | 16.2% | 21.6% |
|---|
| Starcore International Mines Ltd ($SAM) | 35.4% | 38.0% | 27.4% | 25.9% | 2.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Royal Gold Inc ($RGL) | 86.1% | 88.2% | 88.6% | 84.4% | 65.0% |
| Franco-Nevada Corp ($FNV) | 38.6% | 62.1% | 44.6% | 72.3% | |
| Silver Wheaton Corp ($SLW) | 84.8% | 82.6% | 75.3% | 69.6% | |
| Sandstorm Gold Ltd ($SSL) | 63.8% | 74.3% | 49.9% | 62.1% | |
| Nevsun Resources Ltd ($NSU) | 81.0% | 76.8% | 54.5% | 60.4% | |
| |
|---|
| Median (136 companies) | 22.0% | 18.2% | 10.8% | 9.6% | 3.2% |
|---|
| Starcore International Mines Ltd ($SAM) | 36.6% | 40.2% | 35.1% | 33.1% | 11.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Barkerville Gold Mines Ltd ($BGM) | 123.7% | 38.5% | 49.9% | 7,166.9% | 3.2% |
| Marlin Gold Mining Ltd ($MLN) | | | | 508.8% | |
| Imperial Metals Corp ($III) | 28.2% | 69.2% | 185.7% | 280.2% | |
| Golden Minerals Co ($AUM) | 462.4% | 36.9% | 16.8% | 212.8% | |
| Franco-Nevada Corp ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | |
| |
|---|
| Median (138 companies) | 24.1% | 26.3% | 25.4% | 16.0% | 10.2% |
|---|
| Starcore International Mines Ltd ($SAM) | 10.6% | 11.2% | 12.7% | 18.0% | 11.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lucara Diamond Corp ($LUC) | -7.1% | -2.9% | 41.3% | 54.7% | |
| CanAf Group Inc ($CAF) | 74.9% | 37.0% | 65.2% | 37.6% | |
| Nevsun Resources Ltd ($NSU) | 89.8% | 52.2% | 8.8% | 35.0% | |
| Dynacor Gold Mines Inc ($DNG) | 45.6% | 62.8% | 50.9% | 31.3% | |
| Canfor Pulp Products Inc ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | |
| |
|---|
| Median (142 companies) | 5.4% | 4.8% | -0.1% | -0.3% | -7.1% |
|---|
| Starcore International Mines Ltd ($SAM) | 42.5% | 46.1% | 10.8% | 9.0% | -5.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| VMS Ventures Inc ($VMS) | | | | 86.7x | |
| Ur-Energy Inc ($URE) | | | | 55.1x | |
| Katanga Mining Ltd ($KAT) | 0.4x | 19.4x | 3.3x | 18.8x | |
| HudBay Minerals Inc ($HBM) | -2.8x | -4.8x | 2.0x | 14.0x | |
| Imperial Metals Corp ($III) | -0.1x | 1.5x | 4.9x | 12.9x | |
| |
|---|
| Median (93 companies) | -0.1x | 0.3x | 0.8x | 0.9x | -0.3x |
|---|
| Starcore International Mines Ltd ($SAM) | 0.9x | 0.3x | -0.2x | -0.5x | -1.0x |
